Overview:
UAE financial markets closed the first half of 2026 with robust growth across banking transfers, corporate profits, and deposit attraction. Listed companies delivered combined half-year profits of 158.3 billion dirhams, up 16 percent, while commercial banks in Dubai and Abu Dhabi attracted fresh deposits totaling 151 billion dirhams. Asian equity markets opened the week with mixed performance, while gold prices gained modest ground supported by dollar weakness and softer economic data from Japan.
Details:
The Central Bank of the UAE reported that interbank transfers reached 8.83 trillion dirhams during the six-month period, while transfers between bank customers totaled 54 trillion dirhams. Abu Dhabi banks attracted 86 billion dirhams in new deposits, compared to 65 billion dirhams for Dubai institutions, bringing combined deposit bases to healthy levels. Cheque clearing volume reached 664.36 billion dirhams, underscoring the continued role of traditional payment mechanisms alongside digital systems.
Corporate earnings surged across the emirates. The 161 listed companies trading on UAE markets generated combined profits of 158.28 billion dirhams in the first half of 2026, representing growth of 15.97 percent. The top 20 companies captured 73 percent of total earnings. Separately, personal lending rose 5.2 percent to 29.8 billion dirhams, reflecting increased consumer credit demand.
Japan's economy expanded 1.1 percent on an annualized basis during the second quarter, falling short of expectations for 2 percent growth due to weak domestic demand. Early-week trading in Asia saw Japan's Nikkei 225 index hold steady, while Australia's SP/ASX 200 declined. Gold prices opened the week near 4,400 dollars per ounce, supported by dollar weakness following softer economic data.
Outlook:
Investors are monitoring continued corporate earnings momentum in the UAE and tracking interest rate expectations in major markets. Oil market participants remain focused on geopolitical developments and shipping flows through the Strait of Hormuz, where tanker movement has slowed amid ongoing tensions.